• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Council services hit by failure of funding regime for child asylum-seekers

0
  • by Chris Smith
  • in 151 News · Resources
  • — 27 Jun, 2019

Anger with the Home Office is growing among local authorities bearing the brunt of funding rules for unaccompanied asylum-seeking children. Chris Smith investigates.

Local authorities supporting unaccompanied children who are victims of war or environmental disasters are warning they cannot continue subsidising national commitments due to their own budget pressures.

London Borough of Croydon has revealed it is making up a £10m shortfall and Kent County Council this week called for the government to refund the £6.1m it has spent over the past two years on unaccompanied asylum-seeking children (UASC).

London Borough of Haringey revealed earlier this year that its budgets had been hit by extra spending costs and Portsmouth City Council is also facing challenges.

According to the Home Office, 34,600 children have been given protection since the start of 2010.

Last year alone, the UK received 2,872 asylum claims from unaccompanied children. This represents 15% of all asylum claims from unaccompanied children in the EU in 2018.

The department revealed there are currently nearly 4,500 unaccompanied asylum-seeking children in local authorities in England.

But the spread is focused on London and arrival points into the UK while central government is not funding post-21 care costs.

Figures from London Councils reveal as of 31 March last year, London boroughs were looking after 1,500 UASC – a third of unaccompanied children seeking asylum in England.

As a result, 19 London boroughs reported a cumulative funding pressure of £11m for UASC.

The Home Office announced in May it has revised up its funding formula but councils have told Room151 that it is only part of a problem that began in 2015 when the war in Syria dramatically escalated.

Three issues are driving the current problems:

  • The funding covers young people up to the age of 21 but local authorities have a legal duty of care up until the age of 25;
  • The Government rules for UASCs are that no council should take more than 0.07% of the total number of arrivals but this is voluntary and the dispersal scheme is not working;
  • The backlog on asylum appeals mean councils will have to fund cases until a decision is made on granting leave to remain.

Croydon Council is involved because the Home Office’s asylum intake unit which processes claims is based in the borough, making it the first point of call.

Over the last five years, the council has processed 5,000 children.

Simon Hall, Croydon’s cabinet member for finance and resources, said: “We are supposed to have 65 young people; we actually have 300.

“This has been going on for a long time but in recent years, it’s become acute.”

The added bill for post-21 care leavers means other councils have not rushed to help under voluntary dispersal arrangements introduced in 1999.

Hall said: “The increase in numbers and changes in how you get money from the Home Office means there’s a mis-match between funding and costs.

“Because the dispersal agreement is voluntary, other authorities don’t want the burden. A national scheme isn’t working.”

Kent revealed it currently has 281 unaccompanied children in care and 895 care leavers to fund.

It is facing a deficit of around £600,000 for this year and is lobbying the Home Office to refund the £6.1m costs for the previous two years.

Kent’s chair of children and young people, Cllr Roger Gough, said: “We’re not at anything like the levels of 2015 but we are again running at much higher levels. Over time they will become care leavers. There has been a significant drying up of other local authority support.”

Portsmouth City Council is a port for ferries from France and Spain.

A report to councillors revealed: “Between April 2016 and March 2017 we received 39 UASC into the city and into the care of local authority.

“Between April 2017 and December 2017 we received a further 60 UASC into the city and into the care of the Local Authority.”

The council estimates the costs of support will be an extra £1m in 2018-19.

Services hit

For Croydon, the impact has been on non-statutory services. Hall warns it will also impact on community cohesion.

“It’s putting pressure on things like parks, leisure services and early years.

“We could transform a number of services if we had the money. We could extend free swimming for under-16s and more but we can’t,” he said.

“We’re committed to providing excellent care for children who have already experienced trauma but it puts a squeeze on everything else.”

There is growing concern that numbers may be about to increase, due to heightening conflicts.

According to the Refugee Council, the majority of arrivals are from Afghanistan, Syria, Somalia, Eritrea, Albania, or Iran.

With international tensions rising, councils say the Home Office needs to be ready and resolve the funding issues.

London Councils said: “The scheme, or a successor scheme, must be made fit for purpose and provide a collective solution to the challenges local authorities face.

“Future funding of local authorities needs to accurately reflect the costs they incur from caring for these vulnerable children and young people.”

In a statement, the Home Office told Room 151 it is addressing the funding issue.

A spokesperson said: “The UK has a proud history of hosting, supporting and protecting those in need, including some of the most vulnerable children affected by the migration crisis.

“We recognise that local authorities do incredibly valuable work in looking after unaccompanied asylum-seeking children and are committed to supporting them, which is why we announced earlier this month that we would be increasing funding we provide as a contribution to their costs.”

However, Hall remains unconvinced: “When things were bad in 2015, we stepped up and sent a team of social workers on notice to Calais to help.

“We had immigration ministers thanking us and praising the quality of our work. They haven’t matched the praise with money and long-term there is a cohesion issue.

“National dispersal needs to work. The shire councils need to take their share – and I think Brexit may be a factor.

“The Home Office knows they are not doing the right thing. They know there is something wrong and that they need to step up. They need to get this right.”

Get the Room 151 Newsletter

Room151 Conferences & Events

Share

You may also like...

  • Civil service chief says 114 notices now less likely Civil service chief says 114 notices now less likely 28 Nov, 2018
  • Emergency housing spend exposes ‘false economy’ Emergency housing spend exposes ‘false economy’ 23 Jan, 2014
  • Councils braced for restrictions on borrowing for property investment Councils braced for restrictions on borrowing for property investment 2 Nov, 2017
  • Budget worries, York joins region, Crawley treasury move, Brentwood property push, Woking PFI, Southampton energy and outsourcing, LGPS costs Budget worries, York joins region, Crawley treasury move, Brentwood property push, Woking PFI, Southampton energy and outsourcing, LGPS costs 28 Nov, 2013

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 1 hour ago

    ‘Chasing yield’ not the best strategy as negative rates loom: Recent speculation that the UK may be heading toward negative interest rates prompts questions for treasury officers managing local authority funds at LATIF. Speculation is rife that the UK… dlvr.it/Rr3Mrj pic.twitter.com/wtxYAB20PO

    Room151 2 days ago

    Will new public procurement rules offer the best commercial results?: The government has issued a green paper on reforming procurement rules. Helen Randall and Rebecca Rees examine the proposals and argue they may not go far enough. The Cabinet… dlvr.it/Rqtw6T pic.twitter.com/9GiVTkL08U

    Room151 1 week ago

    The vaccine may help settle cash flows but inflation remains a risk: Sponsored article: Lauren Sewell examines the prospects for long-term borrowing as Brexit settles and vaccines are deployed against Covid-19. On the 9th October 2019 Whitehall sent… dlvr.it/RqZXCr pic.twitter.com/PzgOZOGQ0k

    Room151 1 week ago

    ESG in liquidity: Sponsored article: Gavin Haywood looks at the integration of ESG in Federated Hermes’ money market funds. Federated Hermes has over 300 public sector clients invested in our AAA rated money[...] dlvr.it/RqZX5f pic.twitter.com/E87sBXsay8

    Room151 1 week ago

    New realities of investing cash and liquidity: “What to do now?”: Sponsored article: Brian Buck looks at the “unique challenge” for cash management strategies. As investors assess the ongoing impact of the pandemic on their business, levels of cash and… dlvr.it/RqVbk9 pic.twitter.com/ZElVASmEUV

    Room151 1 week ago

    Extra finance promised by the government receives a broad welcome: Sponsored article: The financial pressures facing local authorities this year continue to pose challenges for council treasurers. While the launch of the UK’s Covid-19 vaccination… dlvr.it/RqTzTF pic.twitter.com/HCjH0pyHR5

    Room151 1 week ago

    A savvy approach to managing your cash: Sponsored article: Caroline Hedges examines the need for active cash management to achieve a higher than average return. Last year saw the already mountainous pile of negative-yielding debt around the[...] dlvr.it/RqTzMK pic.twitter.com/uP0RQYTJLt

    Room151 1 week ago

    Putting alternatives at the heart of multi-asset portfolios: Sponsored article: Nick Edwardson looks at the assets that provide the “most attractive opportunities”. We believe that asset allocation is the primary driver of investment returns and that the… dlvr.it/RqQ2Qt pic.twitter.com/WLBzvRRRUQ

    Room151 1 week ago

    Thriving in the pandemic: Avoiding the stragglers: Sponsored article: George Crowdy looks at the sectors providing opportunities for sustainable investment. Throughout much of 2020, we talked about why sustainable investing has thrived in the pandemic,… dlvr.it/RqQ2NQ pic.twitter.com/dxiPWKFsPl

    Room151 1 week ago

    The development of CCLA’s mental health benchmark: Sponsored article: Amy Browne examines the importance of investing in mental health in the workplace. We are living through a public health emergency in more ways than one. Physical health[...] dlvr.it/RqQ2Jx pic.twitter.com/o6yRSCX3oF

    Room151 1 week ago

    Brexit: What the EU trade deal means for the UK economy: Sponsored article: Hetal Mehta looks at the impact of Brexit on economic prospects. Four and a half years after voting to leave the EU, on Christmas Eve the UK finally[...] dlvr.it/RqLBDt pic.twitter.com/No62srfE8h

    Room151 1 week ago

    Cash dethroned: The quest for liquid yield: Sponsored article: Peter Hunt and George Carne ask how treasury departments can balance the need for yield and liquidity. The massive stimulus and waves of liquidity provided by central banks[...] dlvr.it/RqLBDj pic.twitter.com/05g6Zhu1kU

    Room151 1 week ago

    Richard Harbord: Delayed “capital determinations” make section 25 opinions a new crunch point: The severe pressure on local government budgets now means section 151 officers confront a tricky call on  whether they can make a judgement on the robustness… dlvr.it/RqLBDV pic.twitter.com/vTAbDKFzkI

    Room151 1 month ago

    PWLB Consultation: Analysis straight from Dickens: Helen Radall and Paul McDermott present a legal examination of the new PWLB borrowing rules as Charles Dickens might have imagined it. Free and easy PWLB (“Marley” to his friends)[...] dlvr.it/RnmwLq pic.twitter.com/yFxcPrQqEG

    Room151 1 month ago

    Room151’s top stories from a momentous year: 2020 was the year in which local government grappled with Covid-19, funding strains, controversy over borrowing rules and the threat of financial collapse. It has been an exhausting and historic[...] dlvr.it/RnlpZg pic.twitter.com/g3myNyox6J

    Room151 1 month ago

    Tracy Bingham: 2020, a year best forgotten but also one of learning: Many will rush to erase 2020 from their memories but, writes Tracy Bingham, there were also many lessons about finance teams, strategic planning and leadership. 2020: A year we’d… dlvr.it/RnlpY2 pic.twitter.com/m7G1krrtCu

    Room151 1 month ago

    Settlement must address ‘precarious’ local government finances: Dan Bates crosses his fingers for “no nasty surprises” in this week’s funding settlement but argues the “bigger prize” is post-Covid financial certainty. Thursday (17 December) should be the… dlvr.it/Rnj9dG pic.twitter.com/KLKjjuBqJE

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Merseyside invests £30m in first LGPS deal with Funding Circle
  • Next story Commercial activity given greater prominence in draft CIPFA code

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK